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2015 (2) TMI 300 - PUNJAB & HARYANA HIGH COURTReduction in penalty imposed - Validity of order passed by CESTAT - Whether order passed by CESTAT is arbitrary - Option to redeem goods on payment of partial redemption fine given - Held that:- CESTAT has affirmed intentional mis-declaration of goods but thereafter reduced penalty by merely recording that the penalty is on the higher side. The order, in our considered opinion, is nonspeaking and as a consequence, arbitrary. - CESTAT has assigned a reason for reducing penalty namely that the penalty imposed is on the higher side but while doing so, has not supported its findings by a process of reasoning much less a perceptible process of reasoning. The reduction of penalty without disclosing as to how the penalty is on a higher side, must necessarily be held to be arbitrary. At this stage, it would be appropriate, to point out that penalty has to be calculated under Section 114 of the Customs Act, 1962 and the respondents may be liable either under Section 114(2) or Section 114(3) of the Customs Act, 1962 depending on the date of confiscation and the nature of the provisions in force on the relevant date. The maximum possible penalty was ₹ 15.30 crores but the adjudicating authority imposed a total penalty of ₹ 1.75 crores. The CESTAT has reduced penalty to ₹ 12 lacs without assigning any clear and cogent reasons much less reference to any relevant facts or law. - Consequently, we set aside order dated 15.04.2005, passed by the CESTAT insofar as it relates to reduction of penalty and restore the matter to the CESTAT for adjudication afresh and in accordance with law. - Decided in favour of Revenue.
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